I am an employer and I am looking for an alternative to Gratuity that is better for the company and its employees.

Whilst some companies in the Middle East employ a corporate benefits package, which may include a corporate pension scheme, most are still opting for the minimum gratuity entitlement - which is soon to be relinquished due to the numerous inherent complications.
  
Though gratuity schemes are undeniably great for the employer, they are not necessarily for their employees - hence the more astute employers are making the move to gratuity replacement schemes (corporate pension schemes) to attract and retain key staff members.

For example, if we take an imaginary employee who has worked for your company for 20 years, their first years Gratuity entitlement has made no growth (not even deposit rate!) for the remaining 19 years that they have worked for you. Just think what that could have yielded over the same period in some managed pension fund - and how much happier that employee would be.

If we assume the average expatriate earns in the region of AED 150,000 per annum. Under current gratuity laws, an employee who has been working for the same company in the UAE for 20 years will be entitled to just 64 weeks salary to retire on – AED 228,007. Projecting forward and taking inflation into account, in 20 years this is likely to be the equivalent of AED 100,000 ($ 27,200 or £15,000) in today’s terms! If this was your only retirement provision, how would you make it last for 20+ years?
 
Whether you are looking to reward senior management or assist employees plan for their future, Candour offers advice on a wide range of flexible gratuity replacement schemes to meet your company’s needs with benefits that can include one or all of:

• The option to establish different contribution levels and benefits for each tier of staff

• The option for employer only, employee only or employer & employee contributions

• The option to hold back benefits until the employee has undertaken a specific length of service

• The option to hold the pension plan in trust to avoid fraud

• The option to attach life assurance or death in service

All the corporate pension schemes Candour recommend are international policies with leading financial institutions that have the flexibility to receive contributions and pay benefits anywhere in the world.